BSE has issued a notice informing all its members about SEBI’s directive to discontinue the Investor Risk Reduction Access (IRRA) platform. The notice references SEBI circular no. HO/38/44/12(3)2025-MIRSD-TPD1/I/10705/2026 dated May 07, 2026, and encloses the SEBI circular for members’ reference.

Key Points

• SEBI has issued a circular (dated May 07, 2026) directing the discontinuation of the IRRA platform.
• BSE Notice No. 20260511-6 formally communicates this directive to all exchange members.
• The SEBI circular (HO/38/44/12(3)2025-MIRSD-TPD1/I/10705/2026) is enclosed as Annexure A for ready reference.
• Members are required to take note of the enclosed SEBI circular and act accordingly.

Regulatory Changes

The IRRA (Investor Risk Reduction Access) platform, which was designed to provide investors a fallback mechanism to access their accounts and reduce risk during technical outages at their brokers, is being discontinued by SEBI. This represents a significant change to the investor protection infrastructure in Indian securities markets.

Compliance Requirements

• All BSE members must carefully review the enclosed SEBI circular (Annexure A).
• Members must take necessary steps to comply with the discontinuation directive.
• Any operational or system-level integrations with the IRRA platform will need to be wound down as per the SEBI circular’s directives and timeline.

Important Dates

• May 07, 2026: SEBI issued the original circular on IRRA discontinuation.
• May 11, 2026: BSE issued this notice forwarding the SEBI circular to all members.
• Specific discontinuation deadlines are contained in the enclosed SEBI circular (Annexure A).

Impact Assessment

The discontinuation of the IRRA platform has broad implications for brokers and investors. IRRA was a contingency mechanism allowing investors to square off open positions or cancel pending orders in the event of a broker’s technical failure. Its discontinuation may require brokers to revisit their investor risk management and business continuity frameworks. Members should review the full SEBI circular for detailed timelines and any alternative arrangements mandated by the regulator.

SEBI, via circular ref. no. HO/38/44/12(3)2025-MIRSD-TPD1/I/10705/2026 dated May 07, 2026, has discontinued the Investor Risk Reduction Access (IRRA) platform with immediate effect. The platform, originally introduced on December 30, 2022 and operationalized from October 01, 2023, was designed to provide stock brokers an alternative access point for trading during service disruptions. It has been deemed structurally redundant as it was never accessed by stock brokers since inception.

Key Points

• IRRA platform is discontinued with immediate effect from May 07, 2026
• The platform was introduced in December 2022 and made operational from October 01, 2023 but was never used by any stock broker
• Stock Exchanges unanimously recommended discontinuation after informing SEBI that the platform had become structurally redundant
• Multiple alternative mechanisms now exist that adequately address the operational continuity needs IRRA was meant to serve
• Stock Exchanges are advised to disseminate this circular to stock brokers
• Stock Exchanges may review and strengthen the Contingency Pool Trading facility framework going forward

Regulatory Changes

• SEBI circular HO/38/44/12(3)2025-MIRSD-TPD1/I/10705/2026 dated May 07, 2026 formally discontinues the IRRA platform
• The IRRA framework introduced via SEBI circular dated December 30, 2022 is effectively superseded
• NSE has disseminated the SEBI circular to all trading members via circular NSE/COMP/74154 (Circular Ref. No. 43/2026)

Compliance Requirements

• Trading Members are required to take note of the discontinuation of the IRRA platform
• No active compliance action is required from brokers since IRRA was not in use
• Stock Exchanges are directed to review the Contingency Pool Trading facility to strengthen its framework as an alternative measure
• Stock Exchanges must disseminate the SEBI circular to all stock brokers

Important Dates

• December 30, 2022: IRRA platform originally introduced by SEBI
• October 01, 2023: IRRA platform operationalized
• May 07, 2026: SEBI circular issued discontinuing IRRA platform with immediate effect
• May 11, 2026: NSE circular issued to all members communicating the discontinuation

Impact Assessment

The practical market impact of this discontinuation is negligible since the IRRA platform was never utilized by stock brokers from the time of its operationalization in October 2023. The discontinuation reflects the maturation of India’s trading infrastructure through several robust alternative mechanisms:

1. BCP-DR Requirements: Operationalized business continuity and disaster recovery protocols enabling seamless transitions between primary and alternate sites
2. Enhanced Cyber Security Framework: Including implementation of Security Operations Centre for the market (M-SoC)
3. Technical Glitch Framework: Strengthened protocols for handling technical disruptions
4. Contingency Pool Trading Facility: Exchange-provided mechanism allowing brokers to square off open positions during disruptions via dedicated terminals at exchange premises — this facility has been actively used by brokers on multiple occasions

Stock brokers should ensure awareness of the discontinuation but are not required to take any remedial action. The Contingency Pool Trading facility remains the primary fallback mechanism for business continuity during disruptions.

SEBI has decided to discontinue the Investor Risk Reduction Access (IRRA) platform with immediate effect vide circular dated May 07, 2026 (Ref: HO/38/44/12(3)2025-MIRSD-TPD1/I/10705/2026). Originally introduced on December 30, 2022 and operationalized from October 01, 2023, the IRRA platform was designed as an alternative trading access point for stock brokers during service disruptions. SEBI has determined the platform is now structurally redundant given improvements in broker technology and the availability of the Contingency Pool Trading facility.

Key Points

• IRRA platform discontinued with immediate effect from May 07, 2026
• The platform was never accessed by stock brokers since its inception in October 2023
• Stock Exchanges unanimously recommended discontinuation due to structural redundancy
• Contingency Pool Trading facility remains available as the primary fallback mechanism
• Stock Exchanges are directed to review and strengthen the Contingency Pool Trading facility framework
• Stock Exchanges must disseminate this circular to all stock brokers
• This circular supersedes SEBI circular no. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2022/177 dated December 30, 2022

Regulatory Changes

• Supersession: The earlier SEBI circular no. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2022/177 dated December 30, 2022 (which introduced the IRRA platform) stands superseded.
• Decommissioning: The IRRA platform is discontinued immediately; stock brokers are no longer required to maintain access or compliance obligations related to IRRA.
• Authority: Issued under Section 11(1) of the SEBI Act, 1992 and Regulation 50 of SEBI (Stock Brokers) Regulations 2026.

Compliance Requirements

• Stock Exchanges: Must disseminate this circular to all registered stock brokers under their jurisdiction.
• Stock Exchanges: Are advised to review the Contingency Pool Trading facility and strengthen its framework as a replacement for the IRRA platform.
• Stock Brokers: No new compliance action required; existing IRRA-related obligations are dissolved. Brokers should rely on Contingency Pool Trading facility and their own BCP-DR infrastructure for business continuity.

Important Dates

• May 07, 2026: Date of circular issuance and immediate discontinuation of the IRRA platform.
• October 01, 2023: Original operationalization date of the IRRA platform (now discontinued).
• December 30, 2022: Date of original IRRA introduction circular (now superseded).

Impact Assessment

Operational Impact (Low): Since the IRRA platform was never accessed by any stock broker since its launch, the practical operational impact of its discontinuation is negligible. Brokers have already been relying on their own BCP-DR setups and the Contingency Pool Trading facility.

Regulatory Simplification: The move reduces the regulatory compliance surface for stock brokers by eliminating an unused framework, allowing focus on more effective alternatives.

Contingency Pool Trading: Stock Exchanges will be strengthening this facility, which has been utilized by brokers on several occasions, making it the de facto contingency mechanism going forward.

Technology Context: The discontinuation reflects broader improvements in broker infrastructure — including BCP-DR operationalization, enhanced Cyber Security and Cyber Resilience framework, Market Security Operations Centre (M-SoC), and strengthened technical glitch frameworks — that have rendered the IRRA redundant.